The stock surged 15.31 per cent to hit a high of Rs 94.10 on the BSE. Despite this, the stock was ruling 54 per cent lower than its 52-week of Rs 121.04, the stock hit in February this yearET Online | November 20, 2015, 18:00 IST

NEW DELHI: Shares of Jindal Steel & Power shot up over 15 per cent in Friday's trade amid reports that the fair trade regulator CCI has cleared the steelmaker from cartelisation charges in a coal bidding case due to lack of evidence.

The stock surged 15.31 per cent to hit a high of Rs 94.10 on the BSE. Despite this, the stock was ruling 54 per cent lower than its 52-week of Rs 121.04, the stock hit in February this year.

The government in March this year had rejected the company's bids for three of coal blocks, including Gare Palma IV/2 and 3 and Tara, which it had won in the first two rounds of coal auctions. The bids were cancelled on grounds of being too low compared with the bids for other blocks.

The company had reported a net loss of Rs 618 crore for the second quarter. The earnings were largely impacted by high cost of purchased coal, which dragged Ebitda lower by 68 per cent for the quarter on a year-on-year (YoY) basis.

JSPL continues to grapple with uncertainties pertaining to both key raw materials - coal and iron ore, Edelweiss Securities said in a note. In a note issued this earlier week, the brokerage had raised concerns over the uncertainty that JSPL is grappling with to secure back captive coal and iron ore sources. The brokerage also showed concerns over prevailing weak steel prices.

"Even though steel volumes will continue to see robust growth (38 per cent in FY16 and further 6 per cent in FY17 on rampup at Angul), weak steel prices will continue to weigh on realisations. With the outlook for steel remaining subdued and no visibility of JSPL restoring its raw material linkages, we maintain a hold rating on the stock with a target price of Rs 76."